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Nationally, the number of operating farmers' markets has increased 111% in the past ten years from 1,755 markets to 3,706 from 1994 to 2004 (AMS, 2006). Indiana's farmers' markets has increased at double the rate in the same time frame. An internet and mail census was sent to market masters to assess operational procedures and factors that influence customer and vendor participation in the market. A two-stage least squares model was estimated for the vendor and customer model. In Equation 1.1, paying fees and the number of customers present were the two variables that had a significant, positive influence on vendor participation. In Equation 1.2, the presence of WIC, number of products available, the absence or presence of live music, absence or presence of cooking demonstrations, and reason 2 (vendors), were significant for the customer model at the 0.01 level. The absence or presence of concession stands and picnic areas were significant at the 0.10 level in the customer model.


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